Gold is currently testing the upper limit of its medium term bearish channel at 1,690 and seems to initiate a decline. However, a break of these levels will release significant potential and initiate a bullish trend.
Technical indicators provide buy-signals but are approaching the overbuy zone suggesting a decline. Bollinger bands have tightened greatly in recent days showing a decline in volatility and the imminence of a violent movement.
According to previous events, the market indicates a bullish opportunity as soon as the gold will have broken its resistance of 1,690 with the 1st objective of 1,702, then 1,710. A break through 1,687 will change this plan.
